chapter 19

Human Development

The processes involved in the improvement of people's freedoms, rights, capabilities, choices, and material conditions

Gross Domestic Product (GDP)

the total value of goods produced and services produced by a country's citizens and companies within the country in a year

Gross National Product (GNP)

The total value of the goods and services produced by a country's citizens and companies both domestically and internationally in a year

Gross National Income (GNI)

The total value of goods and services globally produced by a country in a year divided by the country's population

Formal Sector

Businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Informal Sector

Any part of a country's economy that is outside of government monitoring or regulation; sometimes called the informal economy

Human Development Index (HDI)

A measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

Gender Development Index (GDI)

A measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

Gender Inequality Index (GII)

A measure that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Women's Empowerment

Women's options and access to participate fully in the social and economic spheres of a society

Labor-Market Participation (LMP)

Rate that measures an economy's active labor force, calculated by taking the sum of all employed workers divided by the working age population

Microloans

A very small short-term loan with low interest intended to help people in need

Stages of Economic Growth

A model that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth in succession

Dependency Theory

A theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Commodity Dependence

An aspect of dependency theory that occurs when more than 60 percent of a country's exports and economic health are tied to one or two resources